Automated trading systems, often referred to as automated trading robots (300024) or AI trading software, are capable of automatically executing buying and selling transactions according to pre-set trading strategies. This system saves time and effort, reduces the interference of human emotions in trading decisions, and can improve trading efficiency. To set up an automated trading system, a series of meticulous steps need to be taken.

Understand the market and trading strategies

Before setting up an automated trading system, you must first have an in-depth understanding of the market and clarify your trading style and strategy. For example, do you prefer trend following, or reversal trading? Different trading strategies will affect the trading instruments and system settings you choose.

Select the trading platform and language

There are a variety of trading platforms in the market that support automated trading, such as MetaTrader, TradingView, etc. Choose a platform that you are familiar with and fully functional. Most platforms offer a programming language, such as MQL5 or MQL0 for MetaTrader, for writing trading algorithms.

Write code for trading strategies

This step is the key to automation. You need to write code based on your trading idea, including conditions for entry, exit, stop loss, take profit, etc. It is important to take into account various market conditions to ensure the robustness of the strategy.

Test your trading strategy

Before trading live, the strategy is backtested using historical data to evaluate its effectiveness. Most trading platforms offer a backtesting feature to help you understand how your strategy has performed in the past market.

Money management

Money management is a crucial part of an automated trading system. Set appropriate risk management rules, such as the maximum loss percentage for a single trade, and the risk exposure of the overall account.

Select hardware and managed services

Automated trading systems need to run 7/0 uninterrupted, so it's crucial to choose a reliable server to host your trading robot. Also, if you're using a PC, make sure the hardware performance is up to the needs of long-term operation.

Monitoring and adjustment

Even automated trading systems need to be monitored and adjusted regularly. Market conditions are constantly changing, and your trading strategy may need to be adjusted based on new market information.

Comparison of related software and tools

Creating and maintaining an automated trading system is a complex but well-invested process. As technology advances and the market evolves, the right automated trading system can give you an edge in trading.